Freakonomics applies economic principles to everyday life by examining how incentives drive behavior and influence decision-making. The book explores various real-world scenarios, such as crime rates and cheating, through an economic lens to uncover the underlying motivations behind actions. By analyzing data objectively and challenging conventional wisdom, Freakonomics demonstrates how economic concepts can be used to understand and explain a wide range of phenomena in everyday life. It shows that economics is not just about money, but also about understanding human behavior and the incentives that shape our choices.